Housing Matters - Housing Long Beach

ousing Matters
H
A BRIEF HISTORICAL
CONTEXT & FRAMEWORK
FOR EQUITABLE HOUSING POLICY
IN LONG BEACH
WWW.HOUSINGLB.ORG
Housing shapes society. It carves culture and offers people dignity.
Our homes contribute to our sense of self-worth, to our
psychological well-being, to our physical safety and overall health.
A rapidly growing body of research catalogs a simple fact that
should be intuitively obvious: quality housing catalyzes community
development.
This is particularly important in a city like Long Beach,
California—where poverty runs rampant and housing options for
low-income residents are truncated. Long Beach boasts one of the
largest ports in the Western hemisphere; its population is already
one of the most diverse in the United States, and it continues to
diversify with a steady influx of immigration. Long Beach
foreshadows a trend in the rest of the nation in this regard. As we
create safe and quality housing options for every resident in
this city, we are also creating a model that can be emulated in
cities across the country.
When children have stable homes, they thrive in school. When
parents spend an appropriate amount on housing, they buy at local
businesses. When families do not have to choose between rent,
food, medicine, and clothing, physical and psychological health
improve, and family members become more productive workers.
Economic growth, childhood development, education, health, and
safety all pair quality housing with healthy communities.
When communities invest in housing, they offer families a
sustainable future. That is the goal.
The rest of this paper explores the current situation’s origins
and what we need to do to change it.
THE LONG BEACH STORY: A Quick History
of Race, Housing, and Population Growth
The roots of modern, multicultural Long Beach trace back to three major growth spurts.
1
Oil market industrialization ushered in the first migration spike in the 1920s; white middle class
workers and their families flocked to Long Beach, and home construction swelled to meet
their needs.
2
The end of World War II brought the second wave in the 1940s through the 1960s as former
military personnel warmed to Long Beach’s quiet, sunny climate and as African-Americans
escaped the segregated South.
3
The 1980s brought Cambodian refugees fleeing the Khmer Rouge—giving Long Beach the
largest Cambodian community outside of Cambodia itself and also brought immigrants from
Latin America leaving behind harsh conditions and war.
These three major migrations made Long Beach one of the most
diverse cities in the United States, and demand for housing trails
closely behind every jump in population. Twentieth century
housing inequity follows strong racial undercurrents that gained
additional speed from the decades before civil rights laws made
housing discrimination illegal. Before the 1960s, Long Beach
landlords and sellers could legally refuse occupancy to tenants
solely based on race, pushing minority occupants—who were
primarily African American—into segregated areas of West and
Central Long Beach. Most landlords refused to rent to people of
color, and those who did often overcharged people of color for
units with substandard living conditions (Saunders, 2005).
In the 1960s, the California State Legislature passed several bills
targeting discrimination in businesses, employment, and
housing. The Fair Housing Act of 1963 made it illegal for “anyone
selling, renting or leasing a residence to discriminate based on
race, creed, color or national origin,” for example (The Fair
Housing Act of 1968). The law was not universally well received,
and realtor and home association groups in Long Beach
collaborated with similar groups around the state to spearhead
Proposition 14, which successfully repealed of the Fair Housing
Act (Saunders, 2005).
Even though the US Supreme Court ruled Proposition 14
unconstitutional, the segregation it attempted to
institutionalize through the law was still entrenched in Long
Beach through the social system.
Large, local businesses found it difficult to house
their growing, qualified staffs of color outside the
segregated Long Beach neighborhoods. Cal State
Long Beach, the Long Beach Naval Shipyard, and
the VA joined forces with a local advocacy group
to push the city to stop discriminatory practices
that persisted despite changes in the law
(Saunders, 2005). Simultaneously, African
Americans started punching back through the
legal system. Local news outlets took interest in
Long Beach discrimination cases and pushed the
issue into public consciousness. Stories spread
about realtors using “blockbuster” tactics to keep
segregated neighborhoods from integrating. This
increase in social concern and political muscle
led the Long Beach City Council to allot $25,000
to the Fair Housing Foundation in 1969, and they
recognized the need to eliminate racial
discrimination in housing sales and rentals
publicly (Saunders, 2005).
Small and somewhat inexpensive apartments,
known to some as ”cracker boxes,” appeared
around Long Beach from the 1970s through 1990s
as another quick, unsustainable fix for the
growing need for housing. The apartments were
constructed poorly. They had limited parking and
were disliked by neighbors in single-family
homes. These units provided some families
transitional homes while they found their feet,
and then they shifted to stabler lifestyles and
homeownership. Despite this particular benefit,
these units and converted garages provided only
short-term solutions for a long-term problem.
With no tenant protections in place, a single
report of illegality could lead to a quick eviction.
With the growing crisis, and as serious public
health issues arose, residents began to demand
not only the development of affordable housing,
but also tenant protections. Despite multiple
attempts through the City Council and through
ballot measures, there was no success (Saunders,
2005; Humphreys, 2012; Rockway, 2012).
10
20
00
20
90
19
80
19
70
19
60
19
50
19
40
19
30
19
20
In the 1990’s, Long
Beach added 37,000
people, approximately
9,000 families, but
only 2,500 residential
units, overwhelming
the housing market
and resulting in severe
overcrowding.
19
GRAPH 1
10
600,000
500,000
400,000
300,000
200,000
100,000
0
19
population
These civil rights battles helped Long Beach
embrace the need for fair and affordable housing,
but the city was not prepared for that third wave
of growth starting in the 1980s. Lower-income
residents overcrowded the housing market.
In the 1990s, Long Beach added 37,000
new residents, or 9,000 families; during that
same time the city added only 2,500 new
residential units (See Graph 1) (US Census;
Dep’t of Planning and Building).People took
matters into their own hands, and the city saw a
significant growth in illegal residential units.
From 1990-1998, the City of Long Beach found
1,600 cases of illegal housing—from converted
garages to an RV hidden on the roof of an
apartment building. Homeowners stacked bunks
in their garages and charged per person.
One homeowner placed nine bunks in a 700
square foot garage and earned $1800 per
month in likely unreported income. People
could not walk downtown without seeing fully lit
garages in every home (Humphreys, 2012).
HOUSING IN LONG BEACH
NOW: A Contemporary Crisis
The past century sets the stage for today’s
challenges. While racially segregated housing is
illegal now, de facto segregation still ripples
through the community. The City of Long Beach
has concentrated downtown development on
subsidized luxury hotels and a heavily trafficked
convention center—transforming an industrial
workforce into a tourism economy, decreasing
earning potential, and compounding its
problems. Now, Long Beach has higher poverty
and unemployment rates than the rest of the
county, state, and country. Its history of
low-income wages couples with high-cost
housing and overcrowding to produce an
ongoing, intractable housing and segregation
crisis in the present.
The federal government defines affordable
housing as housing that costs no more than 30%
of income. This percentage recognizes that—with
housing costs at or below 30%—a person will be
able to afford basic living expenses like food,
clothing, and medical care.
Nearly half of Long Beach renters spent more
than 35% of their income on rent—forcing
almost 130,000 residents to choose between
rent, food, and medical expenses each
month. This group is disproportionately people
of color (Long Beach Community Database
[LBCD], 2012).
The problem worsens as the pay scale slopes
downward. The current median rent for a
two-bedroom apartment in the city’s
downtown, 90802 zip code is $1,513 per
month (Rent Calculator, 2012)—requiring
an individual to earn $60,520 a year
($29.09/hour) to afford housing in line
with the Federal government’s definition
(See Graph 2). In North Long Beach’s 90805 zip
code, median rent drops to $1200/month—still
requiring annual wages to equal $48,000 a year
($23.07/hour). With the California minimum wage
set at only $8.00/hour—and with a growing
number of low-paying service-sector jobs in the
tourism industry—Long Beach’s imbalance
between jobs and housing tips further and further
toward unsustainability.
$45.00
$
$
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35.00
30.00
29.09 - Wage in order to afford Housing in 90802
25.00
23.07 - Wage in order to afford Housing in 90805
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GRAPH 2
The jobs we offer do not complement the housing
we create. According to the City’s 2005-2010
Consolidated Plan, “[m]any of the workers who
make up the diverse fabric of Long Beach earn
very limited incomes, and are faced with
overcrowding or overpaying for housing to live in
the community. Occupations earning less than
$25,000 annually in Long Beach include people we
interact with daily such as: Fast food workers,
Retail salespersons, Security officers, Nurse’s
aides, Social workers, School aides and janitors,”
(City of Long Beach, 2005). This means that
eight out of the ten fastest growing jobs in
the region result in extremely low-income
households. (See Graph 2) (State of CA, EDD
2012). 67% of extremely-low income renters and
62% of extremely-low income homeowners spend
more than half of their income on housing
(Human Impact Partners, 2011).
Housing costs more than most people can
afford. 20,000 Long Beach families live in
overcrowded homes (LBCD, 2012). If the
current housing and segregation crisis continues,
the entire city will feel amplified, detrimental
effects to its quality of life, its economy, its health,
and its safety.
84
82
80
HOUSING’S IMPACT
ON: Health
Life expectancy itself varies with neighborhood.
Overcrowding and substandard living conditions
are major factors in disease transmission, chronic
illness, respiratory infections and even decreased
life expectancy (Krieger, Higgins, 2012). In Long
Beach, people who live in East Long Beach’s 90815
zip code—with its large parks, quality housing,
and high caliber schools—have a life expectancy
of 83 years. People who live who live in downtown
Long Beach’s 90802 zip code—with its
overcrowding, poor air quality, and minimal
outdoor space—have a life expectancy of only 76
years (See Graph 3) (Chheang, 2012).
Many health factors at play in our communities
point back to living conditions. We live in the
midst of national obesity and diabetes epidemics,
and lack of affordable housing links to inadequate
nutrition, especially for children. Relatively
expensive housing leaves low-income renters little
to spend on food—especially healthy food
(Ellaway, Macintyre, Fairley, 2000).
GRAPH 3
In some zip codes almost seven years
are shaved off of your life if you end up
living in certain neighborhoods, those with
poorer resources and substandard housing.
78
76
74
72
90802
90813
90805
90806
90810
90804
90807
90814
90808
90803
90815
Inadequate and unaffordable housing leads
to increased stress and decreased mental
health, too. It is no surprise that when
families work multiple jobs to pay for rent—or
when families live in overcrowded conditions
with multiple families per unit—the stress has
lasting impacts. In contrast, adequate and
affordable housing provides stability, privacy, and
a sense of control that leads to psychological
health for individuals and their greater
communities (Pollack, Egerter, 2008).
The high cost of housing forces families to choose
between basic needs, and families are often left
without health care. One study found that
low-income people in unaffordable housing are
less likely to have routine sources of medical care;
they often postpone treatments and are more
likely to use emergency rooms for primary care,
which stresses local economies (Kushel, Gupta,
Gee, 2006).
This situation at home spills into education.
Long Beach Unified School District’s truancy
rates in 2009-2010 were a staggering 45%.
Neighboring LA County held its rate to 29%
(See Graph 4) (California Department of
Education [CA DOE], 2011; Minasian, 2012).
Children who are chronically absent in elementary
school are 7% more likely to drop out of high
school (Seeley, 2008). In the long run, truancy
leads to lower grades, the need to repeat
academic years more often, higher rates of
expulsion, and lower rates of graduation. These
students are also at heightened risk for
delinquency, substance abuse, gang activity, and
criminal behavior (Attendance Works, 2012;
Seeley, 2008; Walls, 2003).
Long Beach Unified School
District’s truancy rates in
2009-2010 were a
staggering 45%.
HOUSING’S IMPACT ON:
Education and Childhood
Development
These effects are even more pronounced in
children. Home environments shape children’s
interpersonal skills, mental health, motivation,
cognitive development, and physiology.
Overcrowded homes create overstimulation for
children and parents (Kopko, 2007). Dr. Gary
Evans, an environmental and developmental
psychologist at Cornell University, found that
overcrowding in homes produces patterns of
withdrawal, psychological distress, and behavioral
problems. General motivation decreases, and
girls, specifically, often develop patterns of
helplessness. Blood pressure in 10-12 year old
boys increases, and overnight stress
hormones spike in all children ages 8-10,
which stunt growth and slow neuroplasticity
in the long term.
45%
LONG BEACH
27%
CALIFORNIA
29%
LOS ANGELES
GRAPH 4
A Personal Story
Housing and Educational Achievement
Jose Tovar lived in inadequate housing conditions and
struggled at school. With no space or privacy to do homework,
his grades suffered and in 9th grade he held a 1.4 grade point
average. That year, his family was able to secure quality
affordable housing, and within 2 years his GPA shot up to 3.0
and the next year he graduated with 3.4 GPA and honors.
Children need safe and quiet spaces to study. Housing
conditions impact a child’s ability to succeed in school.
Economic family issues is a major, contributing
factor to chronic truancy. Families who cannot
find a quality and affordable home move
frequently (Attendance Works, 2012; Seeley, 2008;
Walls, 2003). Parents work long hours to pay rent,
and students struggle to find transportation to
school (Attendance Works, 2012; Chhang, 2012).
They struggle to adjust to new living and learning
environments. Some teenage children have to
work to buttress family finances. Middle income
families face challenges getting their children to
school, as well; mornings can be chaotic. Parents
have early meetings and cars break down, but
theses problems are far more pronounced in
lower-income communities where childcare and
alternative modes of transportation are virtually
nonexistent. When families spend over 30% of
their incomes on rent, they have little left to
spend on educational safety nets.
The need for intervention is clear, but the
solution is complex. Affordable housing offers
stability and provides solutions to many, ongoing
educational issues. When a family can afford their
housing, stop moving, and get their children to
school with a tolerable level of chaos, many of
the issues that lead to truancy and decreased
educational performance disappear entirely.
HOUSING IMPACT ON:
Local Economies
Extensive studies show that affordable housing
boosts local economies through job creation, tax
revenue for local municipalities, and increased
spending in local shops due to savings on rent.
The financial benefits start with construction. In
2010, the National Association of Home Builders
studied the economic impact of building 100
Low-Income Housing Tax Credit (LIHTC) units for
families and seniors in a typical metropolitan
area. The study estimated that every 100 units
built would lead to the creation of 80 new
construction jobs—with an another 42 jobs
created as a byproduct of these construction
workers spending their incomes in local shops.
(Nat’l Assc. of Home Builders, 2010).
The growth continues when occupants move into
their new homes. A four person family has to
make $42,150 or less per year to qualify as
low-income (LA County FY 2012 Income Limits). If
this family were to live in an apartment at median
area rent costs, they would pay 43% of their
monthly income on rent. Remember that the
federal government defines affordable housing as
housing that costs no more than 30% of income.
If this family of four could procure an affordable
housing unit, their monthly rent costs would drop
by over $450 per month. Low-income families
spend this money on basic but otherwise unmet
needs (Bivens and Edwards 2010 – p.15).
If Long Beach realizes its 2013-2021 Regional
Housing Needs Assessment goal numbers and
construct the 4,000 units it says it needs—and, if
we were to drop the $450 figure saved by our
family of four to $300 per month to stay
conservative—the result would be over $14.4
million reinvested in the local economy within
the first year of construction. This figure does not
even account for the multipliers that will further
grow this investment and lead to greater
economic growth. The people who live in our 100
unit example spend their left over pay locally,
which adds 30 more jobs to the neighboring
economy (Nat’l Assc. of Home Builders, 2010).
Residents’ spending is more diverse than the
initial construction phase—ranging from
healthcare to education, from retail to
restaurants.
New markets emerge around these units, and
businesses know that in advance. In a national
survey of more than 300 companies, housing
affordability was frequently listed as an important
factor in businesses’ decisions to build, relocate,
or expand. (Gambale 2009). From an employer’s
perspective, affordable housing puts local
economies at a competitive advantage (Center
for Housing Policy, 2009).
37%
18%
13%
8%
18%
6%
GRAPH 5
Permit/Impact Fees
Utility User Fees
Businesss Property Taxes
General Sales Taxes
Other Fees and Charges
Other Taxes
The benefits gain momentum for governments,
too. Affordable housing generates revenue for the
state and local municipalities through sales tax
on construction materials, workers’ income taxes,
zoning fees, etc. The National Association of
Home Builders projected that local
jurisdictions gain roughly $827,000 in
immediate revenue from an investment in
those 100 units of affordable housing (See
Graph 5). Affordable housing also lifts
neighboring property values or leaves it
untouched, so tax bases usually increase as a
result (Center for Housing Policy, 2009). The
extent of the impact on local property values is
controlled by the nature of each subsidy
program, by existing neighborhood stability, and
by the type of property replaced by the housing
itself (Ellen, 2007).
When housing is affordable, families can afford
necessities like food, clothing, and medical care.
When families can live within the 30% margin,
entire communities benefit from the ripple effects
of their disposable income.
CONCLUSION
The health, education, and economic
benefits of affordable housing are clear, but
this paper is about something even more
pivotal: dignity. The citizens of Long Beach
do not simply need places to live; they need
somewhere to call home.
For too long, Long Beach families have been
playing by the rules, but quality housing remains
out of reach and the whole community suffers.
Long Beach needs comprehensive, citywide
housing policies that meet the needs of all Long
Beach residents. Residents, developers and city
leaders should work together to provide
opportunities for Long Beach families to have
access to affordable, safe and healthy homes.
Thanks to all our contributors who made this possible:
Jill Gresham
Susanne Browne
Dennis RockwayIMPACT ON:Ryan Shea
HOUSING’S
Gary Hytrek
Josh Butler
Jonathan Jackson
Jack Humphreys
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